Highlights from Transport Sector – Fuel Conservation and Efficiency

1. Highlights from Transport Sector – Fuel Conservation and Efficiency By Ministry of Transport

2. Road Transport Sector • 97% of transport sector fuel consumption by road sector • The average fuel efficiency of vehicle is 1:5 compared to developed countries • Only 12% of the fleet is having fuel efficiency at current level of other countries • 88% of vehicles are old, recondition or badly maintained – fuel efficiency is 1:3.5 only • All low occupancy private vehicle subsidize by the tax payers as Gasoline Car = 28%, Diesel Car = 43% Diesel Vans Etc.= 65% Motor Cycles = 48% & Three Wheelers = 38%

12. Who is getting Fuel subsidy ? • If we give gasoline subsidy 67% of the total gasoline subsidy go to private motorists; • 49% of the Diesel subsidy is enjoyed by private motorists, specially vans; • Both this groups is giving advantage of low import duty and tax to import low fuel efficient vehicles; • They also do not maintained them, and contributed air pollution, contributed deteriorate health of urban poor

13. Poor people subsidize for inefficiency of vehicles • Hybrid vehicles make almost 30 km per liter; • Public Transport vehicles such as Train, & Bus are more fuel efficient and value added to economy is positive value of +6; • Average fuel efficiency of our fleet of used vans and used cars is only 6.5 per liter where as Republic of China has band use of vehicle which is lower than 14 km per liter; • This has a chain effects within the economy and real economic growth will not reached by the poor

14. PCU equivalents and Elasticity

15. Road Pricing MC Toll Social Cost AVC Proposed Toll D Traffic with toll Current Traffic

16. Tank You !!